The concept of tanazul : a jurisprudential study on its application in musharakah based sukuk /
This research analyses the concept of tanazul and its application in musharakah based Ṣukuk from the Shariah perspective. The main issue is the adoption of tanazul in the Ṣukuk Musharakah structuring to offer a feature similar to conventional fixed income. This leads to several Shariah concerns, as...
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| Main Author: | |
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| Format: | Thesis |
| Language: | English |
| Published: |
Kuala Lumpur :
Kulliyyah of Islamic Revealed Knowledge and Human Sciences, International Islamic University Malaysia,
2016
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| Subjects: | |
| Online Access: | Click here to view 1st 24 pages of the thesis. Members can view fulltext at the specified PCs in the library. |
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| Summary: | This research analyses the concept of tanazul and its application in musharakah based Ṣukuk from the Shariah perspective. The main issue is the adoption of tanazul in the Ṣukuk Musharakah structuring to offer a feature similar to conventional fixed income. This leads to several Shariah concerns, as there shall be no determination of return or possible arrangement that may lead to guaranteeing the return of any partners in a musharakah contract. The research begins with an examination on the concept of tanazul and its legitimacy from the Shariah perspective. It then investigates the applications of this mechanism and highlights the concerns of classical and contemporary Shariah scholars in justifying the status of current tanāzul practice in Ṣukuk Musharakah. For this, selected case studies in Malaysia are analysed. This study concludes that the application of tanazul in Ṣukuk Musharakah is permissible if the tanazul is given during the realisation of the profits and not via prior arrangement. As for the exercise of upfront tanazul, some fatwa bodies such as AAOIFI only allow it in cases where the musharakah partners agree upfront to forgo partial of their profit and not the entire profit amount toward the other musharakah partners. Alternatively, the study suggests possible solutions and recommendations to eliminate the element of upfront tanazul either via appointment of the Ṣukuk Trustee as an agent on behalf of Ṣukuk holders to effect the tanazul upon the realisation of profit or via the arrangements of tiered profit sharing ratio. |
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| Physical Description: | xiii, 149 leaves : illustrations ; 30cm. |
| Bibliography: | Includes bibliographical references (leaves 142-149). |